Shares rose Thursday and government bond yields surged slightly after a report said President-elect Joe Biden could reveal a Covid-19 aid package worth about $ 2 trillion.
Katherine Ross from TheStreet discussed the latest stock market news. Cramer spoke about Tesla’s recall of 158,000 vehicles, the increase in jobless claims, and Biden’s yet to be announced stimulus package.
Tesla: buy or sell?
The National Highway Traffic Safety Administration has asked Tesla for electric vehicles (TSLA) – Request report to recall 158,000 of its Model S battery-powered sedans and Model X SUVs due to media control unit malfunctions.
The vehicles would “have a defect related to motor vehicle safety,” the NHTSA wrote in a formal letter to Tesla.
Cramer said the recall will not affect investor confidence in Tesla. “Tesla is a technology company and sometimes you have to remember something, there is so much technology in their cars. It will not lead to a sales backlog in the future and that’s what matters.”
Unemployment claims are on the rise
Jobless claims rose to nearly 1 million last week, hitting the highest level since August last year as the coronavirus pandemic continued to push companies to lay off workers.
Cramer said this number is an indication of how badly we need a stimulus. “I think it should be a targeted incentive. It should go to the 960,000 people and not just everyone who has a job then, and younger people who go straight to Robinhood and buy stock. very important that the right people get the money and that would mean giving it to the people who don’t have it. “
Incentive package
President-elect Joe Biden could unveil a $ 2 trillion spending plan on Thursday that includes $ 2,000 direct payments, in an effort to revive the COVID-hit economy.
Cramer said the stimulus package would be great for the markets and not great for the people who are in pain. ‘They should get all the money that is given to the paid people. If it [government] the student debt would have been forgiven, it would certainly lead to some sort of rally. There are two economies: the investing stock economy and the real economy. The first is fueled like never before. “
None of these are key positions in Jim Cramer’s Action Alerts PLUS charity trust. Want to be informed before Jim Cramer buys or sells stock? Read more from Cramer and his membership team now.